Bellway’s financial results for the year to 31st July 2022 will not be published until mid-October but we do now know that they will show record housing revenue of more than £3.5bn.
This is more than 13% up on 2021 (£3.1bn) and nearly 60% more than in 2020 (£2.2bn), the year of the first Covid lockdown.
Housing completions in 2022 were up 10.5% to a record 11,198 homes at an average selling price of £314,400 (2021 - £306,479, 2020 - £293,054).
Chief executive Jason Honeyman said: "Bellway has delivered another strong performance, with volume output and housing revenue reaching record levels for the group. This result has been achieved through our investment in land and the dedication of our colleagues, subcontractors and supply chain partners, against the backdrop of a challenging operating environment and macroeconomic uncertainty.
“Looking ahead, our sizeable forward order book [7,223 homes] and continued strong investment in land puts the group in an excellent position to deliver another record year of volume output, notwithstanding the ongoing challenges in the planning system and upcoming end of the Help-to-Buy scheme. In addition, a robust balance sheet continues to provide strategic flexibility and a platform for our long-term strategic priorities of volume growth and value creation."
Shane Carberry, equity analyst at Goodbody, commented: “While cost pressures in the sector persist as a result of rising inflation, Bellway’s robust trading update highlights how this is being well offset by house price inflation, a trend which looks set to continue as strong demand remains across the country for further housing developments.
“Despite the worsening economic outlook, housebuilding looks set to continue at pace as we head into 2023. With a low cancellation rate of 13% for the last year, Bellway are well placed to meet its ambition of delivering 12,200 homes in FY23.”
Got a story? Email news@theconstructionindex.co.uk
